Major financial industry groups have urged President Donald Trump’s administration to roll back federal policies that say it has restricted US banks from engaging in digital asset markets, and excessive regulatory overreach is America in financial innovation warned that it was hindering leadership.
In a letter sent to David Sacks, a special advisor to artificial intelligence and cryptographic technology and chairman of the President’s working group on digital assets markets, the group said the group had the following points of policy imposed by federal banking institutions under the previous administration. We have requested immediate withdrawal or revision.
According to the letter:
“These policies have made it extremely difficult for banks to engage in digital asset-related activities despite their clear legal authority to do so.”
They also pressed the White House to include key regulators, the Federal Deposit Insurance Corporation (FDIC), and the Secretary of Currency (OCC) offices in the working group’s efforts to restructure the US digital asset framework. Ta.
US banks have been on the sidelines
The letter, signed by the Institute for Bank Policy, the American Bankers Association, the Securities Industry and Financial Markets Association, and other financial organisations, has left US banks behind international competitors in the digital asset sector due to restrictive policies. He claimed he was taking it.
The banking organization has picked out several regulatory measures issued under the Biden administration, including:
Federal Reserve SR 22-6 Policy on Crypto-Asset EngagementOCC Interpretation 1179 Crypto CustodyFdic FIL-16-2022 Limits Crypto Activity Statement Statement on Crypto Asset Risk Warning Warning
The letter stated:
“The United States cannot achieve its leadership position in digital assets and financial technology under its current status.”
The banking group said the first step to advancing the goal rolling back restrictions from the Biden era created uncertainty and discouraged US financial institutions from joining the sector .
The organization signaled its intention to provide detailed regulatory and legislative proposals to help US banks regain their competitiveness in the global digital asset economy. They also requested a meeting with Sacks and the working group to discuss the next steps.
Include in the Cryptographic Task Force
The group also cited Sack to expand the president’s working group to include bank regulators, citing its influence on financial markets. The FDIC, OCC and the Federal Reserve were not included in the current task force despite oversight from banks seeking involvement in digital assets.
The letter pointed to recent comments by FDIC representative Travis Hill. He acknowledged that the agency’s approach to Crypto led to the perception that it had been “closed for business” on blockchain and digital asset-related activities.
Beyond bank regulators, the group also discusses digital assets, taking into account its role in financial crime enforcement network (FINCEN) and the Bureau of Foreign Assets Control (OFAC) (both departments of the Ministry of Finance) as well as its role in regulating financial crimes. suggested that it should be included in. Sanctions compliance.
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